A Company Made an Error in Calculating and Reporting Depreciation

question 180

Multiple Choice

A company made an error in calculating and reporting depreciation expense in 2013.The error was discovered in 2014.The item should be reported as a prior period adjustment:

• A)on the 2013 statement of retained earnings.
• B)on the 2013 income statement.
• C)on the 2014 statement of retained earnings.
• D)on the 2014 income statement.
• E)accounted for with a cumulative "catch-up" adjustment.

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Definitions:

Local Anesthesia

A type of anesthesia used to numb a specific area of the body without affecting consciousness.

Risk For Aspiration

A condition or situation where there’s a high likelihood of foreign materials (such as food or liquids) entering the respiratory tract.

Depressed Gag Reflex

A reduced or absent involuntary response to stimulation of the back of the throat, which can increase the risk of choking or aspiration.

Blood Sugar

The concentration of glucose in the blood, which is a primary energy source for the body's cells; closely regulated by the body.